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[Week 47 - 2022] Trades Recap and Trade Setups

Updated: 7 days ago

Hey Traders,


Assets classes last week was trading primarily in consolidation as the market takes a breather from the strong momentum the prior week. Both equities indices and Gold experienced some light retracement while the Dollar trades sideways. However, this week would be importanat as the PMI of both European nations and the United States would be released. Expect volatility


Upcoming Economic Release:

Weekly Economic Calendar for Week 47
Credit: ForexFactory.com Time: +8 GMT

S&P500 Futures

SP500 trades in consolidation after strong move up from the prior week

The SP500 index trades above the lower time frame - ascending trendline and the 50 exponential moving average (EMA) of the 4 hour time frame. Short term bullish remains intact as the prior week was relative quiet as we have a slowdown in momentum as mentioned in our previous post: "We are likely to see a decrease in momentum which can potentially lead to a decline in price."


In the high time frame, we can observe that price is slowly trading towards the descending trend line . Even if price continues to trade sideways during this period, price itself will slowly approach the descending trendline due to time factor (trend line sloping downwards).



Dollar Index (DXY)

Dollar Index reached the measured target of the descending triangle.

Last week the Dollar Index met its measured target of the descending triangle breakout. Bullish bias still remains as the Dollar Index continues to trade above the 200 simple moving average (SMA). To look for entries, let us zoom into the lower time frame.


Dollar Index trading in consolidation in the lower time frame

In the lower time frame, we can see that the Dollar Index is trading in consolidation awaiting for the next direction. Any breakout of the 107.155 resistance region would indicate the continuation of the current trend with the initial target of 109.00 region. Conversely, a downside breakout of the 106.16 region would like go below the major support level at 105.0.


Spot Gold (XAU/USD)

Gold retraced and find support at support and 50 EMA (4 hour)

As mentioned on our previous post, Gold's momentum is expected to slow down. Price retraced back towards the inverse head and shoulders neckline which is also supported by the 50 exponential moving average (EMA) in the 4 hour time frame. A reversal confirmation with indicate a continuation of the bull while a breakout of the 1740 region could push price back to the range.


Trade Recap


No updates



Trade Analysis / Setups


NZD/CAD (Analysis 47-1)

NZDCAD Analysis

NZD/CAD is now trading at major resistance level. In addition to the strong momentum, we believe that price will begin to begin retracing some of its upside move.


Short opportunity: At market reopening towards 0.81847 as Take Profit - 1 level.


 

Cheers to all our member who managed to pack some profits this trading week.


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Stay safe out there and safe trading!

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